Understanding the Maximum Credit Limit on an EMI Card: What You Need to Know

In today’s digital-first world, EMI Card has emerged as a popular financial product. Whether it’s upgrading to the latest smartphone or buying home appliances, an EMI Card allows you to convert large purchases into manageable monthly instalments. But how much you can actually spend with it depends on your credit limit. In this blog, we’ll walk you through everything you need to know about EMI Card. Read on! 

What Determines the Maximum Credit Limit on an EMI Card

The maximum credit limit on your EMI Card is set by the issuer and depends on multiple factors. Here’s a quick breakdown:

In short, your EMI Card issuer wants to ensure you can repay what you borrow. That’s why your financial background plays a vital role.

Why the Credit Limit Matters for EMI Card Users

Your credit limit isn’t just a number – it directly impacts your purchasing power and financial flexibility. Here’s why it matters:

•    Freedom to Make Bigger Purchases: A higher credit limit means you can buy more expensive items through EMI without paying upfront.
•    Improved Credit Score: Using your limit wisely and keeping credit utilization low can help build or improve your credit profile.
•    Better Shopping Experience: With EMI Card a sufficient limit ensures seamless checkout, whether you’re on Amazon, Flipkart, or other platforms.
•    Emergency Readiness: You can rely on your EMI Card in urgent situations that require unplanned but essential purchases.

How to Check Your EMI Card Credit Limit

Knowing your available credit limit can help you plan better and avoid overspending. Here are simple ways to check it:

•    Through Mobile App: Most EMI Card issuers have dedicated apps that display your current limit.
•    Via Net Banking or Customer Portal: Log in to your lender’s website to view details related to your EMI Card.
•    SMS Alerts: Some companies send monthly or transactional updates via SMS.
•    Customer Care: You can also call the customer support number and verify your limit. 

Tips to Increase the EMI Card Credit Limit

If you’re looking to raise your credit limit, here are some effective strategies:

•    Maintain a Good Credit Score: Always pay EMIs and credit card bills on time. Avoid defaults or delays, as these can hurt your chances of a credit limit increase.
•    Use Your Card Actively: Regular use of your EMI Card while staying within your limit shows financial discipline and trustworthiness.
•    Request a Limit Increase: Some issuers allow you to request a credit limit increase after a few months of responsible usage. Just ensure your repayment record is clean.
•    Submit Updated Income Proof: If your income has increased since you first got the card, updating your records may help the issuer reassess your eligibility for a higher limit. 
•    Reduce Other Debts: Lowering your credit card outstanding or prepaying a loan can enhance your overall creditworthiness. 

To Conclude

The maximum credit limit on your EMI Card plays a crucial role in shaping your shopping experience. It gives you the power to split large purchases into affordable EMIs, but only if you use it wisely. Understanding how your limit is determined, keeping track of it, and taking steps to increase it can help you make the most of your EMI Card. 
If you’re a first-time user or still for an EMI Card that will suit your needs, Poonawalla Fincorp offers PFIN EMI Card with a credit limit of up to ₹5 lakh with 100% paperless application.

Frequently Asked Questions

Does checking my EMI Card limit affect my credit score?
No, checking your limit is considered a soft inquiry and does not impact your score.

Can I increase my EMI Card limit?
Yes, you can request a limit increase after a few months of consistent and responsible card usage.

What happens if I exceed my EMI Card credit limit?
If you try to transact beyond your available credit limit, the transaction will likely be declined. Some issuers may charge an overlimit fee if such transactions are allowed under special conditions.